News

Vauxhall talks in disarray

  • Fiat won't attend talks
  • Rival bidder may withdraw
  • GM could be declared bankrupt on Monday
Words ByDavid Motton

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Talks over the future of Vauxhalls parent company, GM Europe, have been thrown into confusion by Fiat's refusal to attend.

The German government was expected to choose its preferred bidder for the Vauxhall and Opel brands at the meeting in Berlin today. However, Fiat won't go, blaming the German government's request that Fiat should put money into GM Europe while the details of the government's own funding package are finalised.

Fiat boss, Sergio Marchionne, has said this would expose the company to 'unnecessary and unwarranted risks.'

Reports in the German press suggest Fiat's rival bidder, the car parts group Magna, may also withdraw from the talks.

The future of GM Europe is key to plans to restructure General Motors. With the sale of its European arm in disarray, it's increasingly likely that General Motors will file for Chapter 11 bankruptcy in the US. This will give the US Treasury a controlling stake in the company.